Boards Failing: About half of all corporate boards concede to doing a poor job of planning for CEO succession, with an even greater proportion failing to develop talent and future leaders. Also, roughly half have no succession plan in place. That’s according to series of surveys of public, private and nonprofit organizations published by the National Association of Corporate Directors in Washington and Mercer Delta Consulting, part of HR consultancy Mercer. The surveys found that about 50 percent of corporate boards “consider themselves less effective” in aiding CEO succession. Also, less than 15 percent of directors believe their boards are effectively managing and developing future executives. The findings are in stark contrast to the intensifying scrutiny and oversight given to corporate boards in light of recent financial scandals.
The information comes on the heels of a study by Novations Group of Boston that found organizations may be rethinking their approach to succession. In its Internet survey of nearly 2,050 senior HR executives, Novations found that companies plan to devote 46 percent of their budgets to grooming future leaders.